In this article, we will take a look at the 5 stocks under $20 to buy now. To read our analysis of the recent market activity, you can go to the 11 Stocks Under $20 to Buy Now.
5. Roivant Sciences Ltd. (NASDAQ:ROIV)
Share Price as of November 23: $9.27
Number of Hedge Fund Holders: 44
New York-based Roivant Sciences Ltd. (NASDAQ:ROIV) is a commercial-stage biopharmaceutical company focused on accelerating the development and commercialization of medicines. It targets a wide range of diseases including uterine fibroids, endometriosis, prostate cancer, Parkinson’s disease, diabetes, pulmonary arterial hypertension, and multiple rare and fatal pediatric conditions.
On October 23, Roivant Sciences Ltd. (NASDAQ:ROIV) announced entry into a definitive agreement under which Roche Holding AG (OTC:RHHBY) will acquire Telavant Holdings, Inc., owned by Roivant Sciences Ltd. (NASDAQ:ROIV) and Pfizer Inc. (NYSE:PFE) for a purchase price of $7.1 billion and a milestone payment of $150 million.
Roivant Sciences Ltd. (NASDAQ:ROIV) owns 75% of Telavant while Pfizer Inc. (NYSE:PFE) owns the remaining 25%. The agreement includes the development, manufacturing and commercialization rights in the US and Japan for RVT-3101, a novel TL1A directed antibody for people suffering from inflammatory bowel disease, including ulcerative colitis and Crohn’s disease.
As of Q3 2023, 44 of the 910 hedge funds tracked by Insider Monkey were long Roivant Sciences Ltd. (NASDAQ:ROIV) and held shares worth $3.2 billion. Daniel Gold’s QVT Financial held the most shares of the company with ownership of 11.5 million shares valued at $1.3 billion.
4. ImmunoGen, Inc. (NASDAQ:IMGN)
Share Price as of November 23: $16.15
Number of Hedge Fund Holders: 46
Waltham, Massachusetts-based ImmunoGen, Inc. (NASDAQ:IMGN) is a biotechnology company focused on the research and development of antibody-drug conjugates (ADCs) for cancer treatment. Its primary product is ELAHERE, a first-in-class ADC targeting folate receptor alpha expressed in multiple types of tumors including ovarian, endometrial, and non-small-cell lung cancers. ELAHERE received FDA approval for the treatment of ovarian cancer in adults, in November 2022.
On November 2, ImmunoGen, Inc. (NASDAQ:IMGN) released its financial results for Q3 2023. It generated total revenues of $113 million, including $105 million from ELAHERE net sales, and a net income of $31 million. At $0.10, the normalized EPS exceeded consensus estimates by $0.06.
On August 28, ImmunoGen, Inc. (NASDAQ:IMGN) announced an exclusive collaboration with Takeda Pharmaceutical Company Limited (NYSE:TAK) to develop and commercialize ELAHERE in Japan. The company received $23.4 million upfront payment and is eligible to receive up to $135 million in regulatory and commercial milestone payments.
As of Q3 2023, ImmunoGen, Inc. (NASDAQ:IMGN) shares were owned by 46 leading hedge funds with the total shares held by them valued at $1.0 billion. Jeremy Green’s Redmile Group was the largest hedge fund shareholder of the company with ownership of 17.5 million shares valued at $278 million.
3. Toast, Inc. (NYSE:TOST)
Share Price as of November 23: $28.27
Number of Hedge Fund Holders: 66
Toast, Inc. (NYSE:TOST), based in Boston, Massachusetts, is a software company that provides a cloud based restaurant point of sale and management software system to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management.
On November 7, Toast, Inc. (NYSE:TOST) released its financial results for Q3 2023. Its revenues increased by 37% y-o-y to $1.0 billion, while net loss declined by 68% y-o-y to $31 million. The company also upgraded its full year outlook for revenue to $3.83 billion to $3.86 billion and adjusted EBITDA to $38 million to $48 million.
As of Q3 2023, Toast, Inc. (NYSE:TOST) shares were held by 46 hedge funds with the total shares held by them valued at $1.6 billion. Mick Hellman’s HMI Capital was its largest hedge fund shareholder with ownership of 14.4 million shares valued at $269 million.
2. Coupang, Inc. (NYSE:CPNG)
Share Price as of November 23: $30.6
Number of Hedge Fund Holders: 73
Coupang, Inc. (NYSE:CPNG) is a leading ecommerce company based in Seoul, South Korea. It offers a variety of ecommerce related services including same-day and next-morning delivery of groceries and general merchandise, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play.
According to Insider Monkey data on 910 hedge funds, 55 hedge funds held shares of Coupang, Inc. (NYSE:CPNG), valued at $3.6 billion, as of Q3 2023. The largest shareholder was Lee Ainslie’s Maverick Capital holding 77 million shares valued at $1.3 billion.
Like other stocks under $50 such as, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), and Warner Bros. Discovery, Inc. (NASDAQ:WBD), hedge funds are also loading up on Coupang, Inc. (NYSE:CPNG) shares.
In its Q3 2023 investor letter, Baron Funds, an investment management firm, made the following comments about Coupang, Inc. (NYSE:CPNG):
“When we originally invested in Coupang, our thesis was constructed around the company’s wide product selection, low prices, and unrivaled convenience thanks to its investments in an end-to-end infrastructure that covers over 70% of Korea’s population, enabling over 99% of orders to be delivered within one day or less, rather than the industry norm of two to three days, driving customer satisfaction, which translates to higher customer retention rates and lifetime value. We thought that Coupang would continue to gain market share in the U.S. $500 billion-plus Korean retail market, while expanding its offerings into additional categories, expanding its ecosystem via a third-party marketplace, and continuing to invest in infrastructure density to further capture inefficiencies, enhancing the customer experience, and improving profit margins. The company has since outperformed our expectations, growing its market share to 25% (#1 in the industry), despite not being a first mover, while building an unrivaled user experience with 99.8% of products delivered the next day (with the majority of them by dawn) and becoming profitable significantly faster than we expected. Our biggest takeaway from the visit was that despite all of Coupang’s success, there is still a long runway of growth ahead.”
1. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Share Price as of November 23: $10.85
Number of Hedge Fund Holders: 63
New York City-based Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a global media and entertainment company. It was formed in April 2022 through the merger of WarnerMedia’s merger with Discovery which combines premium entertainment, sports and news assets with leading non-fiction and international entertainment and sports businesses.
On November 8, Warner Bros. Discovery, Inc. (NASDAQ:WBD) released its financial results for Q3 2023 which failed to meet the consensus estimates for EPS. The company generated a revenue of $10.0 billion and a normalized EPS of -$0.07, which missed expectations by $0.26.
As of Q3 2023, Warner Bros. Discovery, Inc. (NASDAQ:WBD) was ranked highest on our list of stocks under $20 to buy now. The stock was held by 63 hedge funds with the total shares held by hedge funds valued at $1.5 billion.
You may also like to read 10 Small Businesses That Have High Failure Rates and 16 Most Exclusive Credit Cards in the World
